Ready to improve your credit score? We wish there were tricks and shortcuts we could teach you… but there aren’t. Building a better credit score takes time and effort – but there are a few things you can do right now to give yourself a head start!
#1: Ask for a credit limit increase
One of the main factors used to calculate your credit score is your Credit Utilization Ratio.
Your Utilization Ratio is a measure of how high your balances are on your lines of credit compared to your borrowing limits. In simpler words, it’s a snapshot of how maxed out your lines of credit are. When you improve your utilization ratio, you improve your credit score.
There are two ways to improve your utilization ratio: pay off a big chunk of what you owe, or increase your borrowing limit.
It is usually hard to come by a wad of cash to pay down your balances (but if you get a bonus at work or a big tax refund… paying down debt may be the wisest thing you can do with it).
But, if you have a good payment history, it can be pretty easy to get a credit limit increase on one or more of your existing cards. Usually, all you have to do is ask. And once the new limit is reported to the credit reporting companies, your credit utilization ratio will be recalculated and your credit score will go up accordingly.
BIG WARNING!! That new credit limit will be very tempting… so stay strong! If you just spend up to your new credit limit, you’ve not only un-done all the good you gained, but you put yourself in a worse financial position because you now have more debt. The increased credit limits only help improve your credit score if you don’t increase your balances.
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#2: Start your debt snowball
Organizing all your debts and establishing a plan to pay them off is the first step toward a lifetime of good credit. There are many ways to do this, but the most popular one is to list all your debts from smallest balance to largest and start throwing every extra penny you have at the smallest one. Once that one is paid off, take everything you were paying to that first one and add it to the minimum payment for the next one in line. When the second one is paid off, take that whole payment and add it to the minimum for the third in line… and so on. Over time, your monthly debt payment gets bigger and bigger, paying down your debts faster and faster.
We have a whole article about how to set up one of these debt snowballs. It’s easier than it sounds and can save you thousands of dollars in interest over time.
As you post more on-time payments and reduce your overall debt, the more you will improve your credit score.
#3: Enroll in NCES credit restoration
NCES credit restoration helps you improve your credit score by deleting credit reporting errors, reversing negative accounts and collections that are inaccurate or invalid, and reclassifying delinquent accounts to “paid as agreed”. There are no tricks or gimmicks. We simply help you communicate with the credit reporting companies to fully leverage your rights according federal and state law.
We help our clients complete three sets of challenges to address negative remarks on their credit reports. The whole process typically takes 4 to 6 months, but clients often see improvements in their credit scores in as little as three weeks. Credit score increases of 100 or 150 points are common, but of course, everyone’s situation is different.
If you’d like to learn more about how NCES credit restoration can help you improve your credit score, please call us at 770-952-5168 during normal east coast business hours or schedule a free consultation anytime at www.myscorerestored.com.
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If you have any questions, please give us a call at 770-952-5168 or contact us online.
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This information is intended for informational and educational purposes only and not as legal advice. If you have concerns about your credit report, harassment, identity theft, illegal collections activity, garnishments, or property liens, you should consult an attorney who specializes in consumer rights and defense.